Understanding Customer Relationship Management (CRM) for Small Business

It’s amazing how consumer behavior is radically changing these days. One day they like your product, the next day you’re out of their shopping list. That is why most companies, small or big, have invested in customer service centers to foster loyalty among thousands of consumers worldwide.

But marketing is all about cutting through the clutter. If everybody’s doing it then it will not stand out as unique anymore. In this case, having customer service agents, whether in-house or outsourced, has become a standard for every business and not a competitive advantage.

Consumers across industries want something more than the usual. And boy, they demand more from the company. Loyalty is measured on how well you exceed customer expectations and how well you “spoil” your beloved yet fickle customers. At the end of day, they can always bring their money outside your company. You must think one or two steps ahead of competition to gain.

What do customers want? They want more customized or personal approach. They want to feel important and special to the company even if they are not major customers! They want to embody the concept of Customer is King.

Enter CRM

How would you feel if you visit your local bank and all staff greet you by your first name, prepare your favorite coffee, and provide you with well-prepared answers to your questions? Amazing right? Suddenly, the idea of transferring your account to another bank seems crazy! The end experience is customer delight.

So, how do you capture this trivial yet vital information without breaching any security measures?

Enter Customer Relationship Management (CRM) or one-to-one marketing tools. It utilizes the power of cutting edge technology to capture customer insights and create a database filled with personal details such as birthdays, anniversaries, and other special moments. In this high-tech world, information is power.

Although CRM software is easily installed in every customer agent’s computer, its effective usage lies in the ability of your business to integrate CRM as part of your strategies and marketing initiatives. Only then you can realize the true power of CRM. Otherwise, it will just be a waste of money and effort to set up the system.

Remember that there is no middle ground when it comes to CRM. Either you will succeed tremendously or fail terribly.

A basic CRM process starts with finding the right customers, digging customer info, and serving customer needs. Sounds simple right? Actually it’s a tedious work. Let me give you the breakdown.

Finding the Right Customer

1. Eliminate bad apples. Not all customers must be part of your CRM and you must learn to spot the good ones from the crowd. Disqualify customers who like to buy only during your sale season but switch to other brands once you return to original prices.I’m not saying you ignore these customers. After all, a sale is still as sale. Instead, do not prioritize them in your CRM programs. Learn to cultivate your resources and minimize your expenses.
2. Think potential. Aim for “customer share” or the amount a customer is willing to expend for your products/services. Use the 80/20 rule in finding the right customers. Who are my top 20% customers who will give me 80% of my profits? That’s a good starting point.

Digging Customer Information

After segmenting your customers according to their actual and potential contributions to your business, the painstaking process of gathering pertinent information starts. However, privacy is something most of us value so much and might prove to be very difficult to generate these days.

Good thing there are some proven strategies to help you get that ever elusive customer information.

1. Freebies. The best things in life are free so they say. Offer free giveaways, product samples, or discounts on some of your high-margin products in exchange for some free information they will provide.
2. Be online. It’s amazing how Internet altered the way businesses communicate with their customers. Back in the old days (meaning early 90s), buyers visit malls or shopping centers to know more about the products. The trend shifted now as more and more customers visit the Web first to gather information and reviews about a product.It simply means you have the opportunity to gather more customer information such as e-mail addresses by asking Internet visitors to sign up for free newsletters. You can also set up a blog to foster communication and hook your customers to visit your site frequently. Having an online community makes it easier for you to gather feedback and exchange information.

Once you have the info, you need to input this on your CRM software and it will handle the rest. What is required of you is to develop yourself and your people to be customer-centric and always on the lookout to improve customer experience.

Walk the Talk

All your painstaking efforts to build an extensive database will be futile if you don’t know how to deliver your products/services based on expectations of your target market. The theme here is consistency both in online and offline initiatives. CRM is only a supporting tool to help you deliver utmost personalized service. However, at the end of the day it is your responsibility to create the actual experience with your customers.

Fortunately, there are affordable technologies available in the market you can easily customize to meet your needs (after all you’re a customer as well asking for more personal attention).

When buying CRM, I urge you not to look at the lump sum amount for it’s guaranteed to make you frown. Evaluate its cost based on its long-term impact to your business.